The boost of e-commerce is affecting the technological developments in logistics

November 27th, 2017

The increasing importance and growth of e-commerce has led to multiple developments and changes in the trade business, but nowhere has its impact shown to be greater than in the logistics industry. With the boost of the popularity of online shopping, the expectations of the consumers worldwide have been growing as well. Today, consumers expect to order the product of their choice quickly, with one single click and to receive it in a couple of hours or a day at the most.

These expectations have led to the application of a number of innovations and procedure changes in the logistics industry. The majority of the people who shop online most likely do not realize the extent of hard work which goes on behind making the online shopping experience satisfactory, quick and smooth.

In actuality, with the boost of e-commerce, the strain on logistics has grown immensely. With the increased expectations for seamless, reliable and quick transport and delivery – many of the processes within the logistics industry have become automated.

The automation in logistics

The use of machines and robots for packing, palletizing, lifting and transporting goods is becoming a common tendency in logistics. AI is used for the development of more advance robots and automated systems. AI is used for deliveries to the end customers by predicting the demand based on previous demand, weather and other factors. Also, modern AI based technology is used to monitor the condition and health of the goods in the pallets.

The automation and the use of AI technology in the supply chain management processes have evolved quite rapidly in the last few years. The logistics is just the part of the SCM which involves the actual transport of the products being transferred and delivered as a result of the boost of e-commerce.

The 3 major innovations in logistics

According to the experts in DHL, the three major innovations which will change the entire process of the logistics services are: the use of unmanned vehicles for transport and deliveries, the utilization of the Internet of Things and AI and machine learning technologies to take over most of the processes in logistics.

Amazon already introduced their drone delivery service, and many other online retailers have followed their steps. Driverless cars and buggies will most likely soon be introduced as means for delivery as well.

As for the Internet of Things, forecasts show that more than 50 billion objects will be connected by the year 2020, which means that it will have a big impact on the logistics industry as well. Currently, most of the IoT is used for the consumer market, but expectations are that it will gain popularity in logistics processes such as inventory tracking and others.

AI and robotics in logistics are being used to enhance the quality, speed and cost of the processes involved in the transport and delivery of packages and goods ordered online by customers worldwide. Also, omni-channels consisting of multiple consumers and companies within the supply chain are also making use of AI technologies. These innovative technologies allow for faster, more accurate and cost effective deliveries of the growing numbers of online orders and purchases.